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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: the traveler who wrote (9136)	5/27/2011 12:12:59 PM
From: E_K_S	Respond to of 34328

Your right traveler. SFL is a finance company collateralize by it's ships. It's not as exposed to the daily rate charter changes reflected by the BDI but the very long term trends does influence their ROI. I guess that is another reason why I like SFL as it is the financing arm for Fredriksen and performs more like a bank (w/ generous dividends) that also provides profit sharing when times are good. The profit sharing arrangement is unique to SFL from everything I have looked at. It is based on a per contract basis with the the Ship owner(s)(usually FRO) and juices the return to SFL shareholders when charter rates are extra ordinary high. I have not seen any similar arrangement for profit sharing in the regional banks I own or even with any of my REITs. Occasionally the shareholders will receive an extra dividend from the BOD but never is there a written contractual profit sharing agreement that benefits the shareholders like SFL has. It's definitely one of the more friendly shareholder companies I have owned. I wonder if SFL will ever expand into the onshore terminal and service business. Perhaps help finance some LNG fixed based terminal facilities to complement Fredriksen's Golar Lng Ltd business (GLNG). They did finance the huge SeaDrill Rigs (over $650Million a copy). A land based terminal would not be much more and have a longer service contract life. EKS